Posts Tagged "taxable"

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Posted on Mar 13, 2013

* The “No Budget, No Pay Act of 2013,” signed into law on February 4, suspends the federal debt limit through May 18. * The “No Budget, No Pay Act of 2013” gives members of Congress until April 15 to pass a budget, or their pay will be suspended. * The March 1 filing deadline for farmers and fishermen has been extended to April 15 due to the late start in this year’s filing season. * March 15 is the deadline for calendar-year corporations to file their 2012 tax returns. * March 15 is the deadline for corporations to elect S corporation status for 2013. * The IRS reminds those who split the tax payment on a 2010 Roth conversion that the second half is due on 2012 tax returns. * Now that estate and gift tax rules have become “permanent,” you should review your estate plan for any necessary adjustments. * The IRS announced the inflation-adjusted alternative minimum tax exemption for 2013: $51,900 for singles and $80,800 for couples. * Itemized deductions for 2013 will be limited if your adjusted gross income exceeds $250,000 (singles) or $300,000 (couples). * Check for carryover items from prior years that could reduce your 2012 taxes — such as excess capital losses and gifts to charity. * Your top tax rate in 2013 will be 39.6% if your taxable income exceeds $400,000 ($450,000 for married couples). * You’ll pay 20% on long-term capital gains in 2013 if your taxable income exceeds $400,000 for singles or $450,000 for couples. * If you turned 70½ last year and didn’t take your first required distribution from your IRA, you must take it by April 1,...

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Identify shares you’re selling

Posted on Nov 16, 2012

You can often manage the size of your gain or loss when you decide to sell some, but not all, of a particular stock or mutual fund. To do this, you must have kept good records of the date and the price for each share purchase. By selling the highest cost shares first, you’ll minimize your taxable gain or maximize your loss. You must specify the particular shares you are selling at the time you...

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Is all my income taxable?

Posted on Oct 26, 2012

Generally, all sources of income are subject to income tax unless specifically excluded. Here are some sources of money that are not taxable: * Money received as a loan. * Gifts and inheritances. * Child support received. * Welfare benefits. * Worker’s compensation (generally). * Damages received for physical injury or sickness. * Cash rebates from purchases. * Meals and lodging for the convenience of the employer on employer’s premises.  Some sources of money that may or may not be taxable depending on the circumstances: * Life insurance proceeds. * Scholarship grants.  One source of income that is often overlooked is generated by bartering. If you trade goods or services for other goods or services with another person, both of you need to report the fair market value of the goods or services as income on your tax return.  This list is by no means all inclusive. If you need additional information about tax, business, or financial matters, please contact...

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Investment Tax Tip

Posted on Sep 11, 2012

Consider tax-exempt investments as a means of cutting your income tax. There is an easy way to compare the yield on tax-exempt investments (such as municipal bonds) with the after-tax yield from taxable investments. Subtract your top tax bracket from 100 and divide the tax-exempt interest rate by that number. The result is the equivalent taxable...

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Unemployment benefits: Are they taxable?

Posted on May 13, 2011

Unemployment compensation can provide a welcome buffer while you’re transitioning to a new job. But with the help comes a tax effect, because the benefits provided under federal or state laws are usually includable in your income in the year you receive them. As a result, depending on the amount of unemployment benefits you expect to receive, you may want to complete Form W-4V, Voluntary Withholding Request, to have federal income tax withheld from your benefits. The withholding rate is generally 10%. You can also ask the unemployment office to withhold state income tax. Alternatively, you can adjust or begin making quarterly estimated tax payments. The amount of unemployment compensation you report on your income tax return is also affected by benefits you have to repay. If you receive and repay benefits in the same year, you can subtract the repayment from the total you received. However, if you make repayments in a year following the receipt of the benefits, the tax treatment depends on how much you repay, and can be claimed either as an itemized deduction or a credit against your current-year tax. Please contact us if your employment situation changes. We can help with tax and benefit related issues such as severance pay, retirement account rollovers, and deductions related to job...

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